Journalize the Following Business Transactions in General Journal Form

question 1

Essay

Journalize the following business transactions in general journal form. Identify each transaction by number. You may omit explanations of the transactions.
1. The owner, Hank Williams, invested $50,000 to start a record Company operating as a sole proprietorship.
2. Received a $10,000 deposit from a customer to produce a record.
3. Purchased $15,000 of sound equipment using cash and a $10,000 loan.
4. Paid 6 months rent in advance. Monthly rent is $750.
5. Provided services for $12,500, half of which was collected in cash at the time of the sale.
6. Paid staff salaries of $3,000.
7. Paid himself $2,500.
8. Collected the remaining outstanding balance on customer accounts.
9. Paid the outstanding loan, in full, from the purchase of the sound equipment.
b. What is the cash balance that would appear on the trial balance at the end of the period?
a. Journalize the following business transactions in general journal form. Identify each transaction by number. You may omit explanations of the transactions.

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Definitions:

Activity Rate

The cost rate assigned to a specific activity, used in activity-based costing to allocate indirect costs to products or services.

Activity-Based Costing

Activity-based costing is a costing method that assigns overhead and indirect costs to specific activities, providing more accurate product costing.

Overhead Cost

General business expenses that relate to the operation of a company but cannot be directly tied to a specific product or service.

Product Costs

The costs incurred to create a product, encompassing direct materials, direct labor, and manufacturing overhead.